HIMARAYA Co., Ltd.

Business Details

HIMARAYA Co., Ltd. is primarily engaged in the sale of sports and leisure goods, operating through three channels: comprehensive leisure sports goods stores, specialty sports goods stores, and EC (internet sales). Product categories consist of ski & snowboard equipment, golf equipment, outdoor gear, general sporting goods, and others. Consolidated subsidiary Core Brain Co., Ltd. handles EC logistics (fulfillment). As of the end of May 2026, the company operated 99 stores nationwide with total sales floor area of 216,246 square meters, pursuing both the expansion of EC-exclusive and reuse products and the strengthening of existing stores in parallel.

Recent Overview

Net sales rose slightly, but profit declined sharply as mild-winter inventory clearance and impairment losses weighed on earnings

Net sales for the cumulative third quarter of FY2026 (ending August 2026, covering September 2025 to May 2026) totaled ¥45,248 million (up 1.2% year on year), a modest increase. Meanwhile, inventory clearance during the mild winter pushed down the gross profit margin, and the company recorded ¥127 million in impairment losses on fixed assets related to closed stores as an extraordinary loss, resulting in a sharp decline in profit: operating profit of ¥136 million (down 47.8% year on year) and quarterly net profit attributable to owners of parent of ¥19 million (down 89.5% year on year). The number of stores decreased by two to 99 (down 2 stores year on year). Total assets increased by ¥9,451 million due to an increase in accounts payable (up ¥5,489 million) and an increase in long-term borrowings (up ¥3,270 million), and the equity ratio declined to 36.1% (from 47.1% at the end of the prior fiscal year). The full-year earnings forecast remains unchanged (net sales of ¥62,000 million, operating profit of ¥440 million).

Key Products

Growth Drivers

• Continued firm demand for general sporting goods (growth in racket sports, footwear, and summer clothing)
• Improved profitability through expansion of EC-exclusive and reuse products and efficiency improvements at distribution warehouses
• Rebuilding of the earnings base through sales floor improvements and operational efficiency centered on existing stores
• Sales growth in golf equipment (bag items such as caddie bags and new club products)
• Strengthened competitiveness through digitalization initiatives and responsiveness to changing customer needs

Risks

• Risk of reduced demand for seasonal merchandise (ski & snowboard equipment, winter apparel) due to mild winters and abnormal weather, and margin deterioration from inventory clearance
• Cost pressure from rising personnel expenses driven mainly by minimum wage increases and higher logistics costs due to energy price fluctuations
• Continued weakness in the outdoor category due to delayed recovery in demand in the camping equipment market
• Structural changes in the sporting goods retail market driven by intensifying competition, including manufacturers' direct EC sales and entry by companies from other industries
• Increased financial burden from higher borrowings and impact on financial soundness from the decline in the equity ratio (36.1%)
• Risk of recording extraordinary losses such as impairment losses associated with store closures